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Coronavirus

COVID-19

The Business Finance Guide will share links to relevant business guidance and support from the UK Government in relation to COVID-19

Guidance

Coronavirus Business Interruption Loan Schemes and Fund

Support for the continued provision of finance to UK businesses during the COVID-19 outbreak

COVID-19 Guidance

Uncertainty and the impact on cash

There has never been a more challenging time for small businesses than the one we’re currently facing.

As well as following government guidance and taking steps to prevent the spread of infection (see guidance), as a business owner and employer you’ll be faced with a difficult and challenging economic environment that will likely impact your business’ finances. As such, you may struggle to manage your financial obligations in this time of crisis.

The British Business Bank and ICAEW have created new content to help businesses that are facing financial and operational challenges related to uncertainty and change. It focuses specifically on improving the availability of cash to meet obligations within the business.

The guidance published here may not be relevant to your business and the specific challenges you’re currently faced with. We will endeavour to update the site as and when new government measures are introduced, to help as many UK businesses as possible to access the support and resources they need during this current period of uncertainty.

Guidance on reopening workplaces safely

The UK Government has developed a tool to help businesses in England to reopen safely during coronavirus. The tool encourages businesses to carry out a risk assessment and helps to identify the workplace adjustments that they should make.

Use the reopening workplaces guidance tool here

Find coronavirus support for your business

The Government has also created a simple business support finder to help businesses locate the financial support available to them.

Visit the business support finder

Coronavirus: Government measures

On 11th March 2020, the Chancellor set out a £12 billion package of measures to support businesses through the economic disruption caused by COVID-19.

Further to the Budget, on 17th March the Chancellor announced an unprecedented package of government-backed and guaranteed loans to support businesses, making available an initial £330 billion of guarantees – equivalent to 15% of GDP.

Learn more about the latest government measures

Coronavirus Business Interruption Loan Schemes and Fund

The Coronavirus Business Interruption Loan Schemes and Fund, managed by the British Business Bank, are designed to support small and large businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.

Bounce Back Loan Scheme (BBLS)

– For SMEs, micro businesses and other businesses requiring smaller loans
– Looking for between £2,000 and £50,000
– Term loan repaid over six years
– No set-up fees and first 12 months of interest payments covered by government
– No repayments during the first 12 months

Learn more about BBLS

Coronavirus Business Interruption Loan Scheme (CBILS)

– For smaller businesses with a turnover of less than £45 million
– Looking for up to £5 million in finance
– Business loans, overdrafts, invoice finance and asset finance available
– First 12 months of interest and lender-levied fees covered
– More than 40 accredited lenders

Learn more about CBILS

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

– For larger businesses with a turnover of more than £45 million
– Looking for up to £200 million in finance
– Business loans, overdrafts, invoice finance and asset finance available
– Repayment terms of up to three years

Learn more about CLBILS

Under BBLS, lenders are not permitted to take personal guarantees or take recovery action over a borrower’s personal assets.

For CBILS and CLBILS, lenders won’t take personal guarantees of any form for facilities below £250,000. For facilities above £250,000, personal guarantees may still be required, at a lender’s discretion.

Future Fund

The Future Fund issues convertible loans starting from £125,000 to innovative companies currently being affected by COVID-19. The loans must be at least 100% match-funded by third-party investors.

Designed for companies with good potential that typically rely on equity investment, the scheme will help companies through this period of economic disruption and recovery, so that they are able to continue their growth trajectory and reach their full economic potential.

Eligible companies need to have previously raised £250,000 or more in equity investment.

Learn more about the Future Fund

The above schemes are just some of the measures the Government has announced. You can find full details of how the Government is supporting public services, people and businesses through this period of disruption caused by the coronavirus here

Learn more about other types of financial support available for businesses

Your business in times of uncertainty:

Included in this guide, you’ll find guidance on:

  • Financial and operational management, including managing late payment
  • Making your team aware of how they can help improve the business’s cash position
  • Where to go for advice and funding options
  • How to approach lenders and investors, especially if you have an immediate cash shortfall

View our guide to managing cash in times of change.

Quotes
"In terms of guidance regarding COVID-19, we urge businesses to contact their finance providers early to discuss how they can support themselves and their clients and customers through the coming weeks.”

Stephen Jones, Chief Executive, UK Finance

NHS Information

The NHS provides public information about the virus and the latest advice on how to protect yourself. If you need medical help, please use the 111 online coronavirus service.

BUSINESS FINANCE GUIDE

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Access to the right kind of finance at every stage of your growth enables businesses like yours to invest, grow and create jobs. That’s why the British Business Bank and ICAEW’s Corporate Finance Faculty, and partner organisations representing finance and business, have created the Business Finance Guide.

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